LAWRENCEVILLE, Ga.—After a record decline in used vehicle values in August, used prices slipped again in September, but not as much, as the United Auto Workers strike affected car values, Black Book reported.
The company’s Used Vehicle Retention Index last month decreased -1.8% (2.9 points) to 159.3 from August 2023 (162.3), which is 9.7% below where it was at the same time in 2022.
As CUToday.info reported, the Index plummeted 5.2 points in August.
The Index sits 39% above the March 2020 reading – the last pre-pandemic month.
‘Noticeable Improvement’
“The UAW strike that started last month is having an effect on the wholesale market: there was a noticeable improvement in the conversion rate at the auctions and wholesale prices stabilized—and in some segments increased—by the end of September,” said Alex Yurchenko, chief data science officer at Black Book. “After a heavy depreciation during the summer months, the wholesale market started to show slower depreciation as dealers stocked up on some inventory to prepare for the potential of a prolonged strike. We expect the used market to be in the wait-and-see mode for at least next several weeks as the strike continues.”
How Value is Calculated
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.
To obtain a copy of the latest Black Book Wholesale Value Index, click here.
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